MIRA INFORM REPORT

 

 

Report Date :

31.12.2013

 

IDENTIFICATION DETAILS

 

Name :

EMERSON CLIMATE TECHNOLOGIES (INDIA) LIMITED (w.e.f. 25.09.2006)

 

 

Formerly Known As :

KIRLOSKAR COPELAND LIMITED

 

 

Registered Office :

Plot No. 23, Rajiv Gandhi Infotech Park, Phase Ii, Hinjewadi, Pune – 411057, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

19.03.1993

 

 

Com. Reg. No.:

11-071223

 

 

Capital Investment / Paid-up Capital :

Rs. 90.000 Millions

 

 

CIN No.:

[Company Identification No.]

U29192PN1993PLC071223

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEK05318F

 

 

PAN No.:

[Permanent Account No.]

AAACK7291C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacture and Sale of compressors and related components in the domestic and export markets and trading in compressors in the domestic market procured from its group companies and also renders after sales services in the domestic market and acts as a commission agent in India for other group companies.

 

 

No. of Employees :

1000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (61)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 9470000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having fine track record.

 

Overall financial position of the company appears to be strong and healthy. Company is progressing well.

 

Trade relation reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment.

 

The company can be considered normal for business dealing at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Raghavendra Kulkarni

Designation :

Finance Executive

Contact No.:

91-2162-224200

Date :

30.12.2013

 

 

LOCATIONS

 

Registered Office :

Plot No. 23, Rajiv Gandhi Infotech Park, Phase Ii, Hinjewadi, Pune – 411057, Maharashtra, India

Tel. No. :

91-20-42002000

Fax No. :

91-20-42002099

E-Mail :

vineet.duggal@emerson.com

raghavendra.kulkarni@emerson.com

Website :

www.emerson.com

Location :

Owned

 

 

Factory 1:

Dhebewadi Road, Karad - 415110, Maharashtra, India

Tel No.:

91-2164-241002

Fax No. :

91-2164-24112

 

 

Factory 2:

Atit- Pali Road, Atit, Satara - 415519, Maharashtra, India

Tel. No. :

91-2162-224200

Fax No. :

91-2162-262069

 

 

DIRECTORS

 

As on 23.05.2013

 

Name :

Mr. Ram Rama Krishnan

Designation :

Director

Address :

11107, Ashburv Meadows Dr. Dayton OH, USA 45458

Date of Birth/Age :

12.02.1971

Date of Appointment :

05.07.2011

DIN No. :

03591766

 

 

Name :

Mr. Sridar Narayanswami

Designation :

Managing director

Address :

Flat E701 & 701A, Lunkad Skylounge, Kalyani Nagar, Pune – 411038, Maharshtra, India

Date of Birth/Age :

20.07.1973

Date of Appointment :

01.10.2012

DIN No. :

05290172

 

 

Name :

Dara Phirozeshaw Mehta

Designation :

Director

Address :

10, South Lands, 177, Colaba Road, Mumbai – 411005, Maharashtra, India

Date of Birth/Age :

13.07.1933

Date of Appointment :

26.02.2002

DIN No. :

00041164

 

 

Name :

Mr. Dilip S Sathe

Designation :

Director

Address :

2719, Meadow Point Dr., Troy, Ohio, USA 45373

Date of Birth/Age :

05.04.1954

Date of Appointment :

26.07.2006

DIN No. :

00613536

 

 

Name :

Mr. Pratap Parshuram Chavan

Designation :

Director

Address :

111, Shelford Way, Dayton OH, USA 45429

Date of Birth/Age :

05.04.1954

Date of Appointment :

10.02.2004

DIN No. :

00391752

 

 

Name :

Pradipta Sen

Designation :

Director

Address :

304/2, Palms, South City-I, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

07.10.1958

Date of Appointment :

26.07.2006

DIN No. :

00051758

 

 

Name :

Mr. Christopher Lee Tucker

Designation :

Director

Address :

25, Palm Drive, Red Hill, Peninsula, Stanley, Hongkong

Date of Birth/Age :

12.04.1971

Date of Appointment :

24.11.2010

DIN No. :

03311518

 

 

Name :

Cedric Soenens

Designation :

Nominee director

Address :

4/5, Baan Koon, Floor 5, Soi Pattan Asin, Nanglinchee, Thungma Sa Thorn, Bangkok, Thailand 10120

Date of Birth/Age :

26.03.1970

Date of Appointment :

10.03.2010

DIN No. :

02978097

 

 

Name :

Mr. Deepak Takkar

Designation :

Whole-time director

Address :

6, Building 3D, Sidharth Nagar, Aundh, Pune – 411007, Maharashtra India 

Date of Birth/Age :

21.08.1959

Date of Appointment :

23.05.2013

PAN No. :

AADPT3058J

DIN No. :

06552360

 

 

KEY EXECUTIVES

 

Name :

Vineet Baldevraj Duggal

Designation :

Secretary

Address :

House No.14, Clover Pinnacle Ridge, Nibm Road, Kondhwa – 411048, Maharashtra, India

Date of Birth/Age :

13.08.1967

Date of Appointment :

27/10/1995

PAN No.:

AANPD1391C

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 23.05.2013

 

Names of Shareholders

 

No. of Shares

 

Copeland Corporation LLC, USA

 

900000

Pradipta Sen

 

1

Total

 

900001

 

 

As on 23.05.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture and Sale of compressors and related components in the domestic and export markets and trading in compressors in the domestic market procured from its group companies and also renders after sales services in the domestic market and acts as a commission agent in India for other group companies.

 

 

Products :

Item Code No. (ITC Code)

Product Description

84185000

Refrigerator, Freezer and other

refreigerating or freesing equipments

84148011

Air or other gas compressors and fans

 

 

Exports :

 

Products :

Finished Goods

Countries :

Middle East

 

 

Imports :

 

Products :

Raw Materials

Countries :

·         China

Germany

 

 

Terms :

 

Selling :

L/C and Credit

 

 

Purchasing :

L/C and Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :

·         ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

 

Bank of India, Industrial Finance Branch, LIC Building; 6/7 Shivajinagar; University, Pune - 411005, Maharashtra, India

 

Citi Bank, Pune Main Branch, Maharashtra, India

 

·         HSBC Bank

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

BBSR and Company

Chartered Accountants

Address :

Pune, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AAKFB4397F

 

 

Holding Company:

Copeland Corporation LLC, USA

 

 

Ultimate Holding Company:

Emerson Elecric co.

 

 

Other Related Party:

·         Emerson ClimateTechnologies Inc.

Emerson Climate Technologies GmbH

Emerson Electric (Thailand) Limited

Fusite Division Emerson Electric (Asia) Limited

 

 

Associate:

·         Emerson climate technologies (Suzhou) Company Limited

Emerson Electric Company (India) Private Limited

CIN No.: U29190MH1995PTC087858

Emerson FZE

clive Samuels and Asso., Inc

EMR (Asia) Limited

Emerson Electric co. Brasil Limited

Leroy Somer India Private Limited

CIN No.: U31200DL1991PTC043306

Emerson Network Power (Pune) Private Limited

CIN No.: U32107PN1996PTC097677

Emerson Argentina S. A.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,000,000

Equity Shares

Rs.100/- each

Rs. 100.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

900,001

Equity Shares

Rs.100/- each

Rs. 90.000 Millions

 

 

 

 

 

 

                                                                                                                           


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

90.000

90.000

90.000

(b) Reserves & Surplus

2278.388

1637.588

1374.861

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

2368.388

1727.588

1464.861

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

86.079

77.483

77.255

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

88.955

75.711

71.442

Total Non-current Liabilities (3)

175.034

153.194

148.697

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

45.000

90.000

0.000

(b) Trade payables

1505.495

1373.112

1046.062

(c) Other current liabilities

199.191

116.459

143.501

(d) Short-term provisions

116.597

76.959

46.321

Total Current Liabilities (4)

1866.283

1656.530

1235.884

 

 

 

 

TOTAL

4409.705

3537.313

2849.442

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

695.104

582.349

568.443

(ii) Intangible Assets

3.816

32.915

61.520

(iii) Capital work-in-progress

24.575

8.017

12.203

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

812.594

481.808

282.881

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1536.089

1105.089

925.047

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

586.608

460.958

532.021

(c) Trade receivables

1349.044

1042.922

631.490

(d) Cash and cash equivalents

140.614

273.475

273.712

(e) Short-term loans and advances

794.942

654.869

487.172

(f) Other current assets

2.408

0.000

0.000

Total Current Assets

2873.616

2432.224

1924.395

 

 

 

 

TOTAL

4409.705

3537.313

2849.442

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

7035.815

5084.302

3857.375

 

 

Other Income

391.703

316.855

162.450

 

 

TOTAL                                     (A)

7427.518

5401.157

4019.825

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

4619.564

3357.365

2612.570

 

 

Purchases of stock-in-trade

102.005

44.259

54.635

 

 

Employee benefit expense

331.822

252.634

220.343

 

 

Other expenses

1401.152

1145.564

1010.643

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(73.272)

112.921

(85.681)

 

 

TOTAL                                     (B)

6381.271

4912.743

3812.510

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

1046.247

488.414

207.315

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

9.447

6.755

1.829

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

1036.800

481.659

205.486

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

117.653

115.712

105.976

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)                 (G)           

919.147

365.947

99.510

 

 

 

 

 

Less

TAX                                                                  (H)

278.348

103.220

(7.597)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-H)                  (I)

640.799

262.727

107.107

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

4180.683

2590.446

1329.043

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

712.00

291.92

119.01

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

8.63

4.86

2.66

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

13.06

7.20

2.58

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

20.96

10.37

3.51

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.39

0.21

0.07

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.02

0.05

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.54

1.47

1.56

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

CURRENT MATURITIES OF LONG TERM DEBTS: NOT AVAILABLE

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Intercorporate borrowings

45.000

90.000

Total

45.000

90.000

 

 

CHANGE OF ADDRESS

 

The registered office of the company has been shifted from 1202/1, Ghole Road, Pune – 411005, Maharashtra, India to the present address w.e.f. 06.07.2009.

 

 

COMPANY OVERVIEW

 

Subject is a 100% subsidiary of Copeland Corporation LLC, USA (the holding Company). The holding company is a wholly owned subsidiary of Emerson Electric Co., USA (the ultimate holding company).

 

The Company is engaged in the manufacture and sale of compressors and related components in the domestic and export markets and trading in compressors in the domestic market procured from its group companies. The Company also renders after sales services in the domestic market and acts as a commission agent in India for other group companies.

 

The Company is headquartered in Pune with manufacturing location in Atit and Research and development facility at Karad. In addition the Company has 5 regional offices across India.

 

 

OPERATIONS AND DIVIDEND :

 

The Company registered a robust growth in its India and exports business. They launched high efficiency residential scroll for India Residential AC market which was well received at key OEMs. They also conducted end customer campaign on the key benefits of this product and significantly increased penetration in Commercial AC business in India by gaining applications at key OEMs. The Company continued to expand their presence in Commercial Refrigeration business with the widest range of products that it offers to Indian customers.

 

Sales and other income of the Company for the year 2012-2013 were Rs. 7427.520 million as compared to Rs. 5401.150 million in 2011-12. Profit before tax was at Rs. 919.150 million for the year 2012-2013 as compared to Rs. 365.950 million for the year 2011-12.

 

 

FIXED ASSETS

 

v                  Tangible Assets

Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Motor Vehicles

 

v                 Intangible Assets

Computer Software

 


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.00

UK Pound

1

Rs.102.174

Euro

1

Rs.85.19

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

61

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

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NB

                                       New Business

 

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PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.